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Negative equity woe for homeowners
Friday September 3rd 2010
Homeowners face four more years of negative equity, according to a new report.
The Home Truths study by the National Housing Federation found those who bought at the height of the property boom in 2007 are likely to remain in negative equity until 2014.
The study found people paid an average £216,800 for their property in 2007, which will have increased to £226,900 by 2014.
The report also predicted a 22% rise in house prices over a five-year period to 2014, fuelled by an under-supply of new housing.
In 2009/10, it said, just 87,360 new homes were started in England, producing only enough homes for a third of the new households forming each year.
The federation said it feared an "entire generation" of people would be locked out of the housing market as a result of high house prices.
It added that the shortage of social housing will leave those shut out of the home ownership market with "little realistic chance" of obtaining a social home.
More than 1.76 million households, or the equivalent of 4.5 million people, were on social housing waiting lists in 2009, a 23% increase in the last five years, according to its figures.
Copyright © Press Association 2010
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